- USD / CAD is rising on rising US yields and risk-off market sentiment.
- The 10-year US Treasury yield hit a new two-month high at 1,567%.
- The drop in oil prices weighs on the USD / CAD.
- US consumer confidence falls for the third month in a row.
As the US session begins, the USD / CAD it is trading at 1.2700, an increase of 0.59% at the time of this writing. Market sentiment is pessimistic, with global stocks recording losses on the outlook for central banks around the world, which are hoping to cut back on pandemic stimulus programs implemented since March 2020.
Additional pressure on market sentiment is the passage of the spending bill and the suspension of the debt ceiling in the US If the bill is not passed, the Treasury will dry up, potentially causing the United States government runs out of money between the second half of October or close to November.
The 10-year benchmark yield was up eight basis points (bps) to a new high of 1,567%, supporting the US Dollar Index, which tracks the dollar’s performance against six rivals, up 0.36%, currently at 93.75.
Western Intermediate Texas (WTI) is down 0.70%, trading at $ 74.74, putting upward pressure on the USD / CAD pair.
US consumer confidence declines for the third month in a row
Meanwhile, the Conference Board released the Consumer Confidence reading, which fell for the third consecutive month to 109.3 from 115.2 in August. “Consumer confidence fell in September as the expansion of the Delta variant continued to dampen optimism,” said Lynn Franco, senior director of economic indicators at The Conference Board.
According to the report, spending intentions on homes, cars and appliances fell back again. Franco added: “These back-to-back declines suggest that consumers have become more cautious and are likely to cut spending.”
Home prices rose 19.9% ​​in July, S&P Global reported, a pip lower than the 20% predicted by economists.
Meanwhile, Treasury Secretary Janet Yelland and Federal Reserve Chairman Jerome Powell are testifying before Congress on the CARES Act.
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